Is Bank Liable?

[Joanna93]

Maryland - My sister recently separated from her husband who has a drug addiction. Six weeks ago they went together to the bank to have his name taken off the account and he signed all the appropriate papers. Yesterday she went to the ATM and her account was negative over $100. She discovered that a check in the back of her checkbook was missing and after calling the bank learned that it was written for a cash amount and cashed two days ago by her ex. Since the ex was supposed to be removed from the account and not have check cashing authority is the bank liable for cashing a check written by someone who is not legally on the account? The bank said his name was not removed from their computers yet, he didn't know why, but all she could do would be to press charges against her ex for theft. My sister thinks the bank is in the wrong since they are supposed to protect her financial interests and they failed to do so. Also the ex does not have a valid driver's license or any other form of ID so the teller must not have even asked for identification!

Thank you for any information you can give me.

 

[I AM ALWAYS LIABLE]

<BLOCKQUOTE><font size="1" face="Verdana, Arial">quote:</font><HR>Originally posted by Joanna93:
Maryland - My sister recently separated from her husband who has a drug addiction. Six weeks ago they went together to the bank to have his name taken off the account and he signed all the appropriate papers. Yesterday she went to the ATM and her account was negative over $100. She discovered that a check in the back of her checkbook was missing and after calling the bank learned that it was written for a cash amount and cashed two days ago by her ex. Since the ex was supposed to be removed from the account and not have check cashing authority is the bank liable for cashing a check written by someone who is not legally on the account? The bank said his name was not removed from their computers yet, he didn't know why, but all she could do would be to press charges against her ex for theft. My sister thinks the bank is in the wrong since they are supposed to protect her financial interests and they failed to do so. Also the ex does not have a valid driver's license or any other form of ID so the teller must not have even asked for identification!

Thank you for any information you can give me.<HR></BLOCKQUOTE>

My response:

This is a simple breach of contract matter. They owe you the money. Go back to the bank and have them credit your account, allowing the bank to "take it on the chin." If they refuse, don't get mad; merely, point your car in the direction of your nearest Small Claims court.

IAAL



------------------
By reading the “Response” to your question or comment, you agree that: The opinions expressed herein by "I AM ALWAYS LIABLE" are designed to provide educational information only and are not intended to, nor do they, offer legal advice. Opinions expressed to you in this site are not intended to, nor does it, create an attorney-client relationship, nor does it constitute legal advice to any person reviewing such information. No electronic communication with "I AM ALWAYS LIABLE," on its own, will generate an attorney-client relationship, nor will it be considered an attorney-client privileged communication. You further agree that you will obtain your own attorney's advice and counsel for your questions responded to herein by "I AM ALWAYS LIABLE."

 

[Joanna93]

Thank you IAAL!

 

[JETX]

You are absolutely correct.

The bank has a fiduciary responsibility to protect their account holders funds. They failed that responsibility when THEY accepted a forged check using a name that was not authorized on that account (the issue that it was a stolen check or that the signature was a revoked authorized is irrelevant).

Bottom line, the bank made an error. They will bend over backwards trying to place the blame elsewhere, but don't let them. It is their error and they are liable for it.

I suggest that you talk with the branch manager at the bank and advise him of the facts and ask that they refund all moneys to the account including any fees that your sister incurred. If they don't do it, then I suggest you contact the state/federal banking regulators on your way to the small claim court to file on them.

------------------
Steve Halket
Judgment Recovery of Houston
[email protected]
-----------------------
This is my PERSONAL OPINION and is not legal advice! Consult your local attorney for your specific situation and laws!

 

[Joanna93]

Thank you Halket! I think this is not going to be easy. My sister has spoken with one of the assistant managers at the bank and like you said they are bending over backward trying to put the blame on her ex, insisting that the only recourse she has to recoup the lost money is to charge her ex with theft. Because of the deficit in her account 3 of her checks bounced and she was also charged a $27.00 insufficient fund fee for each of those 3 checks.

I will advise her to go over the head of the asst. manager and go staight to the top. I'm printing out your suggestions and those of IAAL for her to use. Thank you for your help!